A Check Drawn on a Bank Is an Order to Pay

question 11

Multiple Choice

A check drawn on a bank is an order to pay a sum of money and an authorization to charge the amount to the drawer's account.The drawer may countermand this order by which of the following?

• A) A canceled check
• B) A stop payment order
• C) A banker's acceptance
• D) A time draft

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Definitions:

Resale Price

The price at which an item is sold after it has been previously purchased or used.

Adverse Selection

A situation in financial markets where buyers and sellers have access to different levels of information, often leading to transactions where the party with less information is at a disadvantage.

Tech Support

A service provided by companies to help customers solve technical problems or issues related to their products or services.

Bureaucratic Structure

An organizational structure characterized by strict rules, a hierarchy of authority, and a clear division of labor.